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How Does a SIP Work?

A simple beginner-friendly guide to SIP investing, monthly contributions, returns, and what a SIP calculator can estimate.

What is a SIP?

A Systematic Investment Plan, or SIP, lets you invest a chosen amount at regular intervals, often monthly, into a mutual fund. The amount invested and the investment return can affect the future value.

What a SIP calculator can show

A calculator is only an estimate because actual market returns can vary. Use it to explore scenarios, not to promise a future return.

FAQ

Is a SIP return guaranteed?

No. Calculator results based on an assumed return are estimates, not guarantees.

This guide is for general information. Calculator results are estimates based on the values you enter.